E-procurement adoption in the malaysian public sector: organizational perspectives

Abstract

Electronic government holds tremendous promise for improvements in internal governmental management as much as it does for the public service delivery. Efforts to e-procure goods and services estimated at about 12–25% of GDP from vendors since 1999 is expected to provide significant savings to the government. But the uptake among the vendor community is still less than satisfactory. A study was carried out to examine the organizational context in terms of the suppliers' involvement and perception towards the adoption of the public e-procurement system called “e-Perolehan”. Four main constructs were analyzed namely, organizational leadership, organizational perceived usefulness, organizational perceived ease of use and organizational facilitators involving 502 registered suppliers who are eligible to supply goods and services to the various ministries and federal government agencies. The overall results indicate that organizational perspectives play an important role in ensuring the success rate of adoption and use of e-Perolehan system. However, to achieve greater level of adoption and usage, the government must pursue a dual policy of coercion and persuasive. Incentives and prompt payment to the suppliers and datelines for adoption must not be extended any further as has been the case before.